Brunswick Falls Over 2% After Q1 Earnings - Here's Why
Portfolio Pulse from Nabaparna Bhattacharya
Brunswick Corporation (NYSE:BC) shares fell over 2% in premarket trading after reporting Q1 earnings. Earnings per share were $1.35, matching analyst expectations, with revenues of $1.365 billion, also in line with forecasts. However, sales dropped 22% from the previous year due to lower wholesale ordering and higher discounts. Operating earnings decreased by 53% due to lower sales, higher input costs, and unfavorable currency exchange rates. The company completed a $400 million debt issuance to refinance near-term debt, improving its cash position to $560.3 million. Brunswick reiterated its FY24 net sales outlook of $6.0 to $6.2 billion and adjusted EPS of $7.00 to $8.00.
April 25, 2024 | 1:14 pm
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Brunswick Corporation reported Q1 earnings in line with expectations but saw a significant drop in sales and operating earnings. The company's cash position improved, and it successfully refinanced near-term debt. FY24 outlook remains unchanged.
The drop in Brunswick's stock price in premarket trading is directly related to the reported decrease in sales and operating earnings, despite earnings per share meeting analyst expectations. The significant sales decline and operating challenges overshadowed the positive note of a strengthened cash position and successful debt refinance. The reaffirmed FY24 outlook suggests stability, but the immediate negative reaction reflects investor concerns over current performance issues.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100